Tesla shares rev up as Model 3 deliveries to start in July

A lot rides on the success of Model 3 as the lower-priced car is seen helping turn the cash-losing company into a profitable one.

Tesla Inc's shares were up 3 percent in premarket trading on Monday after the luxury electric-car maker said it would deliver its mass-market Model 3 sedan to first 30 customers on July 28.

Model 3 sedan passed all regulatory requirements for production two weeks ahead of schedule, Chief Executive Elon Musk tweeted late on Sunday.

The announcement allayed worries about Tesla's ability to meet its production goals as earlier launches of its Model S sedan and Model X sports utility vehicle were plagued by delays and initial quality issues.

"Production grows exponentially, so Aug should be 100 cars and Sept above 1500," Musk tweeted. The Palo Alto, California-based company plans to ramp up Model 3 production to reach a target 500,000 cars per year in 2018.

Musk also said he expected "to complete SN1 on Friday (July 7). The term "SN1", taken to be serial number 1, is the first car off assembly line for sale, a person familiar with the matter confirmed to Reuters.